Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

SaaS + Software
Statistic in Growth Strategy

Statistic Info

By definition, non-renewal rates are higher than gross dollar churn rates. However, it is interesting to see that the non-renewal rates are also higher for shorter duration contracts.

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The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue

54% treat upselling and add-on sales as high priority

Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate

When venture capitalists participate in seed rounds, the average round size is 3x larger

Negative Churn and Expansion Revenue

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

Best-in-class SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

After $10M in ARR, the median growth rate slows to just under 50%

More Growth Strategy Stats

In 2018, the revenue of General Dynamics amounted to nearly 36.2 billion U.S. dollars.

It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue

Customer Segmentation analysis will help point out which are your most profitable segments

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

As of December 2018, there were total 105,000 employees in Lockheed Martin, as compared to 126,000 employees in 2015.

Companies with longer contracts (2+ years) reported the lowest annual unit churn

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

For SaaS companies valued at over $1billion, the median amount of financing raised is $206million

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

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